Tax Basis Reporting

IRS Form 8937 provides information concerning a security subject to a corporate event which affects the tax basis of that security. OCC is required by Internal Revenue Code Section 6045B to publish an IRS Form 8937 for any equity option or security futures contract adjustment in which the number of contracts is increased. These adjustments typically occur is response to integer splits or distributions (e.g., 2:1, 3:1). OCC is not required to publish a Form 8937 for non-integer splits (e.g., 3:2, 4:3, reverse splits) where the contract adjustment does not affect the number of contracts.